RLF Agtech Ltd (ASX: RLF) (RLF or company) is pleased to have successfully completed the placement of 7,000 unsecured convertible debt (notes) into a group of institutional, professional and sophisticated investors, increasing its total revenue to $700,000.
Important highlights
- The $700,000 was raised through the issuance of 7,000 unsecured convertible notes at a par value of $100 per note set at $0.06 per RLF shares.
- Funding supports increased working capital expansion for Australian sales teams and marketing, and new application equipment from Liquaforce
- Funding also supports the increase in inventory requirements for China operations
- It matures on September 30, 2025 and the company reserves the right to redeem it previously.
The funds raised will be used to support the company’s short-term operational priorities both in the domestic and international markets, focusing primarily on inventory requirements for the upcoming March sales period. This short-term funding ensures that the company is positioned well to meet current demand, with capital being returned in line with the seasonal trading cycle, typically by July or August.
In Australia, we have more distribution or supply contracts than originally anticipated. The recent agreement has created a national distribution reach with over 500 locations. To support these contracts, the company invests in sales and technician deployment, developing marketing and agricultural support materials, and providing comprehensive product training.
In China, inventory requirements for the upcoming March sales period are accelerating. This short-term funding will allow the company to meet this demand.
A portion of the revenue will also be directed to capital expenditures within the RLF Liquaforce business. Specifically, the funds will be used to acquire variable liquid fertilizer spraying machines. The equipment is expected to improve application efficiency, reduce cost differences compared to granular fertilizer systems, and enhance Liquaforce’s competitiveness in the major Queensland market.
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